Australia BNPL Update
🇦🇺 Australia chose option 2 for BNPL regulation.
As I was finalizing the presentation slides of BNPL, the news came in from the Down Under.
Last November the Australian government offered 3 options:
1️⃣ Tougher self-regulation code + affordability check
2️⃣ Modified regulation under the credit act, including required licensing.
3️⃣ Full regulation under the credit act - treat as credit cards.
Now the government is moving with option 2.
The draft legislation is going out later this year.
Among the proposals are:
📍Caps on late fees
📍Credit increases need consent
📍Improved hardship and dispute processes
BNPL is an interesting example - it seized the consumer behavior/tech trends, and impacted the credit ecosystem, but had to go back to fundamentals.
That is why I chose BNPL as a topic to illustrate the financial innovation journey in the recent decade in my recent presentation in Des Moines, Iowa, and Omaha, Nebraska.
And ending the presentation with a recent quote from the Oracle of Omaha - Mr. Buffett.
The presentation slides are available at risk-school.thinkific.com